Dubai LLC

Dubai LLC Formation Allows You To Retain 100% Profits Although You Can Own Only 49% Of The Business

Best structure to access Government business and UAE local markets

 

Dubai LLC formation: A popular legal structure for setting up local business. Foreign investors have fought shy of making a local company (LLC) because of the 51% ownership that must be given to United Arab Emirates (UAE) nationals. Not to worry. You can still take advantage of using an LLC structure without having to share your returns on the investments.

Please invest 2 minutes of your time to watch the Dubai LLC formation video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

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Dubai LLC formation allows companies to come up with flexible, differential profit sharing arrangements with your UAE national Sponsor. The Sponsor can be paid a fixed annual fee, a percentage of sales or a percentage of profits.

The fixed annual fee is the most popular because then you don’t have to disclose your accounts to any one.

Your fee arrangement can be part of the legal agreement you sign with your Sponsor.

A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital.

Dubai LLC Formation | 49% Ownership With 100% Of ProfitsResponsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.

There is a new Companies Law on the horizon which may bring some changes.

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Therefore the normal shareholding pattern for a Dubai LLC formation will be:

  • UAE national Sponsor – 51% and
  • Foreign Shareholder (s) – 49%

The following is an overview of the advantages of a Dubai LLC formation. Check whether this structure is the optimum solution to fulfill your business needs.

Advantages of a Dubai LLC formation

  • A Dubai LLC formation offers unrivaled access to the Dubai government business and the local UAE economy.
  • There are few restrictions on the activities of a Dubai LLC formation, and it is possible to obtain a license for most activities.
  • Through a Dubai LLC formation, investors obtain a strong physical presence in Dubai. Cost effective office space is easier to find in the city as compared to the free zones.
  • A Dubai LLC formation may or may not be subject to minimum capital requirements, dependent on the size, nature and type of business activity.
  • It is easy to open global corporate bank accounts following a Dubai LLC formation

Dubai LLC Formation | 49% Ownership With 100% Of ProfitsThe Federal Law stipulates that UAE national equity must be at least 51% in any commercial company.

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There are seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures.

  • General Partnership Company
  • Partnership-en-commendams
  • Joint venture Company
  • Public Shareholding Company
  • Private Shareholding Company
  • Limited liability Company (LLC)
  • Share Partnership Company

Out of these seven activities LLCs are more commonly used by foreign investors.

The total time required to form a company could be any where from 2 weeks to 3 months from the date of receipt of all the documents.

You can ask your UAE company formation agent the procedure and cost breakup.

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Licenses issued for business activity in the UAE fall under three categories:

  • Commercial licenses covering all kinds of trading activity
  • Professional licenses covering professions, services, craftsmen and artisans
  • Industrial licenses for establishing industrial or manufacturing activity

In Dubai the licensing authority is the Department of Economic Development.

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Dubai LLC was last modified: July 18th, 2017 by Ramapati Singhania

Ramapati Singhania

He strives for excellence in all he does and brings out the best in his people through guidance, a strong vision and support. He is exceptionally open-minded, flexible, dependable, understanding and straightforward in all words and actions and encourages personal as well as professional growth.

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